Climate projects need trillions of dollars a year – these are investment opportunities for private capital: BCG, Temasek
[SINGAPORE] Yearly financing for climate adaptation and resilience projects could reach US$0.5 trillion to US$1.3 trillion by 2030, with the required amount growing even larger thereafter amid worsening extreme weather events, a report has found.
The study, The Private Equity Opportunity in Climate Adaptation and Resilience, was launched by Boston Consulting Group and Temasek on Wednesday (May 7) at Ecosperity Week 2025, a sustainability event.
The rising need for financing is evident, as 87 per cent of countries now have at least one national-level climate adaptation policy, strategy or plan in place, the report showed.
Despite the growing expenditure, current global spending on climate solution projects is about US$76 billion a year, with public sources contributing the bulk of the amount.
'To meet the rising needs by 2030, there is an opportunity for private investment in the current gap,' the report's authors said, also noting that the need for solutions is generating emerging value pools across value chains.
Such projects range from flood defence and wildfire protection to climate intelligence and water efficiency technologies.
The report laid out the different types of investment opportunities in various impact themes. It also identified the factors that can help private equity investors determine the most promising projects, and assess their attractiveness in both the short and medium terms.
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